AWS Technical Day - Cost optimization on AWS

1. Cost Optimizing and
Cost Monitoring
on AWS
Liron Dor
Technical Account Manager

2. Topics
Cost Optimization Tools and Best Practices.
Model and Track Spending.

3. How do you identify unused ELBs?

4. AWS Trusted Advisor
Trusted Advisor inspects your AWS environment and makes recommendations.
41 available checks in 4 categories.
Last 3 years, 2.6 million recommendations, Customers Reduced Costs by over
$350M.
Available for Business Support and Enterprise Support.
Revisit Trusted Advisor.

5. Design For Elasticity

6. Design For Elasticity
Avoid Over Provisioning Resources.
Pay As You Go Model.
Use S3 Object Lifecycle Management.
Automate Your Elasticity.

7. Match Resources and Workload

8. Match Resources and Workload
Avoid Under Utilized Resources.
Verity of Resources:
EC2 - 38 Instance Type (Current Generation) in 9 Families.
Redshift – 4 instance Types in 2 Families.
RDS – 12 Instance in 3 Families (Depending on the type).
Use Trusted Advisor to Identify Low Utilization.

9. t2 - Burstable Performance Instances
t2
Burstable vs. Fixed Performance Instances.
Bursts beyond baseline using CPU credits.
Web Servers, Development Machines, Small Databases.
t2.medium:
2 vCPU 4 GiB of Memory.
Baseline Performance: 40%.

10. c3.large sysbench

11. t2.medium sysbench

12. EC2 Instances Comparison
Instance vCPU Mem (GiB) Monthly On-
Demand Costs*
Ideal use case
m3.medium 1 3.75 $ 49.05 General Purpose – Fixed Performance
c3.large 2 3.75 $ 76.86 Compute Optimized – Fixed Performance
t2.medium 2 4 $ 38.07 General Purpose – Burstable Performance
If t2 works for your workload:
~22% savings switching from m3.medium to t2.medium.
~50% savings switching from c3.large to t2.medium.
* - Linux costs in N. Virginia

13. Are you purchasing in the most cost-effective way?

14. EC2 Reserved Instances
Long Running Workloads with RIs.
1 – Year RIs - Up to 58% savings.
3 – Year RIs - Up to 75% savings.
3 RI plans: No Upfront, Partial Upfront, All Upfront.
Use Trusted Advisor for RI Recommendations.
EC2

15. EC2 Reserved Instances Utilization Reports

16. Other Reservation Options
RDS – Reserved Instances.
Redshift – Reserved Nodes.
Elastic Cache - Reserved Cache Nodes.
DynamoDB - Reserved Throughput.

17. Model and Track
Spending

18. Tag Your Resources

19. Tagging Basics
Create the Dimensions relevant to you
Tag all “Taggable” resources.
Many AWS services support customer-
defined tags including EC2, S3, and RDS.
Use the Tag Editor.

20. Cost Explorer Forecasts (Demo)

21. Budget (Demo)

22. Wrap - Up
Cost Optimization:
Trusted Advisor.
Design For Elasticity.
Match Resources and Workloads.
Long Running workloads with Ris.
Model and Track Spending:
Use Tagging.
Visualize your costs.
Plan and Track your budget.

23. Thank you